Eli Lilly and Company (NYSE:LLY) Shares Gap Up Following Earnings Beat

Eli Lilly and Company (NYSE:LLY)’s share price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $1,003.46, but opened at $1,075.12. Eli Lilly and Company shares last traded at $1,081.8480, with a volume of 1,494,382 shares.

The company reported $7.54 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $7.48 by $0.06. The business had revenue of $19.29 billion for the quarter, compared to the consensus estimate of $17.85 billion. Eli Lilly and Company had a return on equity of 109.52% and a net margin of 30.99%.The company’s revenue was up 42.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $5.32 EPS. Eli Lilly and Company has set its FY 2026 guidance at 33.500-35.000 EPS.

Eli Lilly and Company Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Friday, February 13th will be given a $1.73 dividend. This is a boost from Eli Lilly and Company’s previous quarterly dividend of $1.50. This represents a $6.92 annualized dividend and a yield of 0.6%. The ex-dividend date is Friday, February 13th. Eli Lilly and Company’s dividend payout ratio (DPR) is presently 29.35%.

Key Headlines Impacting Eli Lilly and Company

Here are the key news stories impacting Eli Lilly and Company this week:

• Positive Sentiment: Q4 beat and strong 2026 guidance — Lilly reported revenue of $19.3B and EPS above estimates, then guided FY‑26 revenue $80–83B and EPS 33.50–35.00, which underpins the stock rally. Reuters: Lilly sees 2026 profit above estimates
• Positive Sentiment: Surging GLP‑1 sales — Mounjaro and Zepbound volumes doubled+/grew strongly, allowing Lilly to offset U.S. pricing pressure through volume growth. This is the main revenue driver cited by management. CNBC: Lilly blows past quarterly estimates
• Positive Sentiment: Capacity investments support long-term supply advantage — Lilly announced a major $3.5B injectable facility (and broader greenfield buildout), reducing past supply constraints and supporting the volume strategy. MarketBeat: The Metabolic Split
• Neutral Sentiment: Analyst positioning — some firms reaffirm buy ratings and raise targets after the beat, which amplifies momentum but also cements expectations. MarketScreener: Goldman Sachs maintains buy
• Neutral Sentiment: Sector rotation vs. peers — Lilly’s upside is amplified by Novo Nordisk’s weaker guide (investors reallocating within GLP‑1 names), so part of the move reflects relative positioning. Investopedia: Stocks diverge
• Negative Sentiment: Valuation and pullback risk — several analysts/writers warn the stock is priced for perfection and a pullback is possible if execution/sales slow or guidance disappoints relative to very high expectations. Forbes: 3 reasons a pullback is likely
• Negative Sentiment: Pricing/regulatory headwinds remain — U.S. pricing measures (e.g., MFN-type pressures) are real; Lilly is using volume to offset price declines, but continued price compression is a recurring downside risk. Reuters: pricing headwinds noted
• Negative Sentiment: Competition is intensifying — Novo’s new oral and Pfizer/other entrants’ GLP‑1 programs are accelerating; long-term share and pricing could be pressured as more oral/cheaper options scale. MarketBeat: Pfizer GLP-1 results

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the stock. Wells Fargo & Company boosted their target price on shares of Eli Lilly and Company from $1,100.00 to $1,200.00 and gave the stock an “overweight” rating in a report on Wednesday, December 10th. BMO Capital Markets reiterated an “outperform” rating on shares of Eli Lilly and Company in a research report on Wednesday, January 14th. Cantor Fitzgerald restated an “overweight” rating on shares of Eli Lilly and Company in a research report on Monday, December 1st. CICC Research raised their price objective on Eli Lilly and Company from $801.00 to $1,060.00 and gave the company a “neutral” rating in a research note on Thursday, November 13th. Finally, UBS Group reiterated a “buy” rating on shares of Eli Lilly and Company in a report on Monday. Three research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $1,162.75.

Institutional Investors Weigh In On Eli Lilly and Company

Several hedge funds and other institutional investors have recently modified their holdings of LLY. Maryland Capital Advisors Inc. purchased a new stake in Eli Lilly and Company in the fourth quarter worth $25,000. Miller Global Investments LLC bought a new position in shares of Eli Lilly and Company in the fourth quarter worth about $33,000. Dorato Capital Management bought a new position in shares of Eli Lilly and Company in the fourth quarter worth about $36,000. New England Capital Financial Advisors LLC increased its stake in Eli Lilly and Company by 142.9% in the 4th quarter. New England Capital Financial Advisors LLC now owns 34 shares of the company’s stock worth $37,000 after buying an additional 20 shares during the period. Finally, Sumitomo Mitsui Financial Group Inc. bought a new stake in Eli Lilly and Company during the 2nd quarter valued at about $27,000. 82.53% of the stock is currently owned by hedge funds and other institutional investors.

Eli Lilly and Company Stock Up 10.3%

The company has a market cap of $1.05 trillion, a P/E ratio of 54.16, a price-to-earnings-growth ratio of 0.76 and a beta of 0.39. The company has a debt-to-equity ratio of 1.71, a quick ratio of 1.24 and a current ratio of 1.55. The business’s fifty day moving average is $1,054.31 and its two-hundred day moving average is $895.30.

About Eli Lilly and Company

Eli Lilly and Company (NYSE: LLY) is a global pharmaceutical company founded in 1876 and headquartered in Indianapolis, Indiana. The company researches, develops, manufactures and commercializes a broad range of medicines and therapies for patients worldwide. Eli Lilly maintains operations and commercial presence across North America, Europe, Asia and other regions, serving both developed and emerging markets. The company has been led in recent years by President and Chief Executive Officer David A.